Oil prices rose on Tuesday as a deal to end the Middle East war seemed further out of sight with Iran saying it will adopt a more offensive stance and the US ruling out extending a ceasefire agreement, heightening worries about energy supply.
Iran will shift to a "fully offensive" military posture because efforts to negotiate a permanent end to the war with the US have stalled, a senior Iranian official told Reuters on Monday, as Washington ruled out extending a temporary ceasefire agreement.
Outward progress towards peace talks and a resumption of oil tanker traffic through the strategic Strait of Hormuz has ground to a halt, threatening to extend the conflict that the US and Israel launched with attacks on Iran on February 28.
Brent crude futures climbed 27 cents, or 0.3 per cent, to $91.14 by 0003 GMT, after rising to their highest since July 30 on Monday.
US West Texas Intermediate crude futures were up 42 cents to $85.04 a barrel, after gaining more than 1 per cent earlier in the session to $85.37, their highest since July 31.
"Oil has jumped to start the week as US-Iran relations look increasingly shaky. A deal to reopen the Strait of Hormuz still does not appear to be in sight, and shipping numbers remain at a trickle," said chief market analyst at KCM, Tim Waterer.
Following attacks on tankers, only five commodity vessels transited the Hormuz strait on Saturday, with none registered for Sunday, ship-tracking data from Kpler showed, versus 31 in the prior weekend.
Yemen's Houthis attacked what they described as a Saudi military ship and four escort vessels in the Red Sea with missiles, according to the group's military spokesperson Yahya Saree on Telegram.
Source: Business Standard
